The International Energy Agency (IEA) Wednesday warned that disruptions to global oil supplies in April could be twice as high as those recorded in March.
The head of the International Energy Agency (IEA), Fatih Birol, attributed the disruption to Iran’s effective blockade of the Strait of Hormuz, estimating that more than 12 million barrels of oil are being lost each day. Speaking in a Norwegian podcast, Birol said April’s oil losses would compound those from March, with liquefied natural gas also affected.
Birol highlighted that specific shortages of jet fuel and diesel are already being seen in Asia and are expected to reach Europe in April or May. “The biggest problem today is the lack of jet fuel and diesel,” he said.
To ease market pressures, the IEA is considering releasing more oil from its strategic reserves after a record 400 million barrels were made available last month.
Oil prices post record March surge as war on Iran disrupts supplies
Global oil markets ended March with their steepest monthly increase on record, as the ongoing US-Israeli war on Iran rattled energy markets and intensified fears over supply disruptions across one of the world’s most critical oil transit corridors.
Brent crude futures for May delivery rose 4.94% by the close of trading to $118.35 per barrel, while May futures for West Texas Intermediate (WTI) fell 1.46% to $101.38.
Despite the divergence in daily trading, both benchmarks recorded exceptional gains over the course of March. Brent climbed 63.3% during the month, while WTI advanced 51.3%, marking the sharpest monthly increases ever recorded in global oil markets. Reuters reported that oil benchmarks have risen by roughly 60% since the war began on February 28, with Brent on course for a historic monthly gain.
The surge comes as traders respond to a sharp tightening in supply expectations following Iran’s retaliatory measures in response to the assault, including restrictions on traffic through the Strait of Hormuz. That waterway carried around 20 million barrels per day in 2024, equivalent to about 20% of global petroleum liquids consumption, making any disruption there immediately consequential for world markets.
Broader market stress has deepened as shipping disruptions spread across the Gulf. A Reuters survey published Tuesday found that OPEC oil output fell by 7.3 million barrels per day in March to 21.57 million barrels per day, its lowest level since June 2020, as the war forced export cuts across Iraq, Kuwait, Saudi Arabia, and the UAE.
Source:Websites
